In the past, terrestrial radio advertising - AM/FM radio - was a major marketing channel connecting brand advertisers to consumers. But times have changed. Advertisers have turned the channel to digital radio.
An Edison Research report found that 79% of Americans aged 12-54 listened to online audio each month. That's an estimated 228 million listeners!
What's more, when digital audio ads reach those people, it has an impact. Research shows that digital audio ads have a 49% better impact on lasting memory than AM/FM radio ads.
That's why audio advertising has shifted to digital formats like streaming audio and podcasts. The benefits are many - from precise targeting of millions of listeners to accurate campaign analytics.
The Limits of Traditional Radio advertising
There's nothing inherently wrong with traditional radio advertising. Radio ads on AM/FM stations still reach a good part of the population. And audiences spend 36% of their listening time on broadcast radio. So, despite the massive shift to digital audio, folks still listen to over-the-air radio. But radio ads come with drawbacks:
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Limited targeting. Targeting is limited to geographical areas and stations.
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Limited measurement. Radio ads lack the technology to track and measure ad performance. It's hard to accurately calculate radio ad effectiveness.
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Higher production costs. Production costs can range from $1,000 to $2,500 or more. You may need to involve studios, voice actors, audio editors, copywriters, musicians. It's complex and expensive.
The Advantages of Digital Audio Advertising
Fortunately, digital audio ads have far greater capabilities, but at lower costs. And with each passing year, more listeners leave broadcast radio for streaming audio content. Not only do they spend more time listening to digital audio, they spend more time listening to the embedded ads.
Audience Reach
Streaming audio ads have emerged as a better, more effective way to reach potential customers. Whether it's during news, music, talk shows, or podcasts, customers are listening. Consider these stats from Edison Research:
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Podcast advertising reaches about 55% of the U.S. population every month—about 155 million people.
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Weekly online audio listening among people 12+ is 73%, or 73 million.
AudioGo's platform allows businesses and ad agencies to reach more than 160 million unique listeners in the US and Canada—in English and Spanish. We can connect you with platforms like Pandora, SiriusXM, iHeartRadio, Univision, SoundCloud and more.
Audience Targeting
Radio advertising uses a "shotgun" approach - blasting ads over an entire region and hoping to reach the right people.
Digital advertising enables advertisers to directly engage with audiences already expressing interest in their business category. For example, realtors or home improvement services can target a single city, specific listener demographic, and content genre.
This hyper-targeted approach concentrates ad dollars on potential customers that are more likely to respond. That leads to more effective response rates and builds ROI.
Audience Engagement
Digital audio advertising enables ad interaction, a feature unavailable with radio ads. Ads with embedded calls-to-action and clickable links allow listeners to visit your website or call directly from their phone. Businesses can add a tracking pixel to their websites to obtain response metrics and boost their chances for follow-up ads.
Additionally, audiences tend to have strong responses to digital audio ads. One report points out that 45% of Millennials and Gen Zs trust podcast ads more because of the stronger connection they feel with their podcast hosts. And another study by Nielsen revealed that approximately 36% of listeners rate podcast advertising as interesting, believable, and trustworthy.
You also can boost audience engagement by adding visuals to reinforce your message. Streaming audio can accommodate video, animations, photos and infographics. The visual content can be displayed on the listening device to make your message more memorable.
Advertising Analytics
Another plus for digital audio ads is the ability to track how ads are performing. Using the AudioGo platform, you can get a real-time view of ad performance, anytime you want it:
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Impressions
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Unique listeners
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Listen-through-rates (LTR)
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Click-through-rates (CTR)
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Daily spend
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Conversions
Plus, your reports can provide listener metrics, such as:
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Age group
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Gender
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Genre
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Location
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Device type
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Publisher
Ad Production Cost
As we said earlier, radio commercials can be expensive. When you factor in production costs and agency placement fees, prices may run into thousands of dollars. And that's before your ad even runs — which could take weeks.
Alternatively, businesses can leverage tools like AudioGo's Creative Suite. Our services let you create an ad narrated by a professional voice actor for only $10, delivered in 48 hours or less. Is that too much? Try our synthetic voice option and create realistic voiceovers instantly, and for free!
Don't have a script? Try our Ad Inspiration Library for ideas. Study successful ad campaigns aligning with your brand goals, listen to the ads, and learn the tips.
You can easily target Spanish-speaking demographics as well. Nearly 20% of the US population is Hispanic, and reports show that 85% of them stream digital music every month. Don't miss out on this valuable market segment.
Ad Rates
Radio ads often come with high-priced, long-term contracts. That's not how we like to do things at AudioGo. We provide a self-serve, pay-as-you-go service.
Businesses can get started for as little as $250. Plus, our ad pricing is based on a CPM (clicks per thousand) basis, starting at $18 CPM. Set your budget, start your campaign, and change the allocation any time you like. It couldn't be easier.
Winning with Digital vs. Radio
If you're considering switching from radio advertising to digital, you're thinking wisely. Check out one of our case studies and see how this business profited from digital advertising after trying radio ads.
Many businesses that strongly benefit from audio advertising often target local audiences. These "hometown" genres are ripe for digital ads:
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Real estate
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Automotive
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Home services
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Healthcare
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Staffing
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Nonprofits
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Higher education
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Financial services
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Podcasters
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HVAC
Contact AudioGO today and learn how to leverage your audio advertising to achieve your marketing objectives. Get on board the digital bandwagon now!
